Regulation
7-300.4 allows for a retail liquor store to transfer alcoholic liquor to another retail liquor store if:
(
a) the same person holds the license for both retail stores;
(
b) the transfer is made by common carrier, a licensed wholesaler’s truck, or by vehicle owned and operated by the licensee;
(
c) the transfer is properly documented as required by the regulation; and
(
d) notice of the transfer is provided to SCDOR in advance. Section 61-6-2430 allows a wholesale distributor to provide pricing discounts “based on quantity purchases if all discounts are on price
only for each location, appear on the sales records, and are available to all licensed retail dealers….” S.C. Code Ann. §
61-6-2430.
Accordingly, a retail liquor store may transfer alcoholic liquor to another store but is prohibited from aggregating purchases from a licensed wholesaler to qualify for the quantity discount allowed by S.C. Code Ann. § 61-6-2430.
The SCDOR is tasked with administering the provisions of Title 61 including the accompanying regulations. S.C. Code Ann. §§
61-2-20 &
61-2-30. When a statute and a regulation can be applied in a contradictory manner, the SCDOR will make every effort to reconcile them so as to render both operative. In this circumstance, the Department will not prohibit a retail liquor licensee from transferring alcoholic liquor between stores simply because that dealer qualified for quantity discounts at one store but not another. On the other hand, the Department must ensure that retail liquor licensees are not unlawfully intermixing orders to falsely obtain quantity discounts.
Toward that end, the SCDOR will not absolutely prohibit a licensee from transferring alcoholic liquor obtained from a wholesaler at a quantity pricing discount (“the discounted product”). Nevertheless, there must be limitations on the manner and quantity of allowable transfers.
- The discounted product may not be transferred to a receiving location unless the identical product is routinely purchased from a wholesaler and stocked on shelves at the receiving location.
- The discounted product may not be transferred from one licensed location to another within 60 days of delivery to transferring licensed location.
- No more than 40 liters of the identical discounted product may be transferred from the original purchasing licensed location to any receiving location.
- When transferring discounted product, the licensee must so designate the product on the notice form supplied to the SCDOR.
These limitations are not applicable if the receiving location qualifies for the same or more favorable quantity discounts as the transferring location. Both the transferring location and the receiving location should maintain sufficient records to demonstrate adherence to these guidelines or that the guidelines are inapplicable.
